Hi HODLers,
I had the Ruby Crypto.com card for more than a year now. I bought it during the Bull Market summer of 2020 as a way to cash out some cryptocurrencies, spend FIAT while getting a 2% cash back.
My opinion about Crypto.com
From the start I did not like Crypto.com as they had a very weird migration from their original coin MCO to CRO.
Most of you forgot about MCO but it used to be the token for the project behind Crypto.com.
The Monaco (MCO) cryptocurrency is a payment platform that rebranded itself as Crypto.com back in 2018
The process to switch from one to another was proftable but Crypto.com diluted the community and force them to switch to CRO which was massively owned by... them!
So, this was the first example of Crypto.com fucking its own customers and investors.
Nevertheless I decided to lock for 6 months c.200-300EUR in order to get this cashback. It worked well as I generated way more cashback than the stake I had put so one could say, it has been a very positive and convenient (as I had a crypto debit card that I could use almost everywhere).
At some point, I thought the ponzi style model of offering cashbacks and great apy will run out once people will continuously dump their CRO tokens.
It surely is less obvious than some other ones and could sustain itself as it acts as its own central bank and still controls most of the CROs and therefore sets the price.
Marketing stunts
As most of you know they made the largest naming rights deal ever, at $700 million over 20 years for the previously named Staples center (Home of the Lakers, Clippers and King)
More information in this article
Then they started sponsoring a lot of sports talk shows (mostly in the NBA and NFL). This has been a strategy for a lot of brokers dealers and cryptocurrencies companies to target sports fans as a lot are into betting/poker and see investments as gambling.
Finally, during commercial breaks, I have seen numerous times their commercial featuring Matt Damon
Mark my workds
Crypto.com is going to hurt the Crypto community when it will go down
If we sum up:
- They spend like crazy
- They print a CRO that they entirely control and manipulate
- They give cash back to users that stake CRO before selling it
- Nobody really uses their exchange/trading platform
- They used to ne known for doing these huge discounted sales to their biggest CRO users (which they stopped for a while now).
Beware, I am aware of the risks, are you?
End of my personal Crypto.com story
Fast forward to recently. I decided to join again as I am moving in a foreign country and buying a lot of shit!
I was waiting for it to drop to 0.2$ (it was around 0.25$). And as I do not follow the coin, I wasn't expecting them to drop their own Smart Chain. It pumped the coin and I couldn't buy it at $0.7+.
In the end, I waited for the recent market drop to get some around 0.5-0.55$. I am clearly expecting to lose money on this stake but have been cashing some nice cash back so I should be well in the positive territory even if it goes to 0 :D
Therefore I locked again my CRO for 6 months and started getting the cashback.
Let's hope it holds until then.
In the meantime, stay safe out there !